Business

I say it all the time -- if Western New York is going to turn itself around, to really spur a new era of job growth and economic vitality, it's going to take homegrown businesses leading the way. It's not going to happen by trying to recruit out-of-state industries into the region.

Daily Yonder has a post today that backs that supposition. It's about how North Carolina paid Dell a lot of money to locate a facility there, but now Dell is closing. Meanwhile, a locally grown company that got almost no government assistance is adding 600 jobs.

When are we going to halt public expenditures on the "buffalo hunt" for footloose industry and instead focus our resources and efforts on the sector that produces by far most of the jobs -- existing industry and homegrown business?

Note, that the author isn't against the kind of infrastructure development going on at the new agri-business park (though I know some of our conservative readers will take issue with the expenditure). He's talking about tax breaks and outright grants to bring in business.

The scholarly literature on incentives shows that they are a very poor investment of public resources. And, of course, the business sector has become expert at playing off one state against another in something akin to corporate extortion; and who can blame them?

Imagine if the South in general and North Carolina in particular had put all of the money spent on industrial recruitment into education, training and small business support. We would be watching even more Quintiles, Cree, PPD, Southern Seasons, Performance Bicycle and other homegrown entrepreneurial success stories all across North Carolina. And, although there are no silver bullets in economic development, homegrown businesses are more likely to stay put, invest in the local community, provide stable civic leadership and keep the control and wealth local instead of away at some remote corporate headquarters.

I continue to maintain that we need to find some way to spur more entrepreneurship, to encourage people already living and working here to take their great ideas and turn them into businesses. If we do invest (as taxpayers) in job growth (not saying we should, just if we do), it should be in businesses started locally, not in recruitment.

Genesee County's jobless rate continues to be a bit better than New York as a whole, but that's only looking at the glass as half full.

From the half-empty perspective, there were more people unemployed in Genesee County in October than there were in September.

The county's rate inched up from 7.1 percent to 7.3 percent.  (full data from the state here)

Meanwhile, the state rate climbed to 9 percent.

The even less rosy number is the jump over the past year for Genesee County from a 5.2 percent unemployment rate to the current 7.3 percent.

However slowly and incrementally, the ball is rolling forward on the Masse Gateway Project.

Tonight, property owner Tom Mancuso presented preliminary development plans to the Batavia Planning Board. The plans, sort of a rough sketch of the project, are the first step in an approval process that will involve a few agency reviews and more than a couple of public meetings.

Tonight's meeting was an opportunity for the planning board to see the plans for the first time and offer feedback, before Mancuso invests fully in project planning.

"We’re trying to move forward as quickly as possible, so the first step was to come here and get a review," Mancuso said after the meeting. "We need to do that before we do an application for a demolition permit, which we would like to do as soon as possible. We’re just finalizing construction funding. And just trying to get the appropriate approval so we can move forward as quickly as possible."

Mancuso said he hopes to have a demolition permit within 30 to 60 days.

The Masse Gateway Project will open up the former Masse/Harvester manufacturing plant to an entrance off Masse Place. The initial opening and refurbishing of the buildings around the entrance will potentially bring new business tenants into that part of the facility and help spur further redevelopment of the property into a mix-used business park.

The project is funded in part by a $1.5 million RestoreNY grant.

Mancuso said there is a lot of interest in the space from prospective tenants, but they do want to know when space will be available.

"The activity’s been good," Mancuso said. "It’s just that the hold-up that will continue to be an issue, is the delivery date. People need to know when we can get them in there and we can’t tell them that right now. There’s plenty of interest. It’s going to be a neat looking space. We’re going to be stymied until we can give them a delivery date."

The project plans will need to be reviewed at a city and county level for environmental impact, drainage, parking, Main-Street access, signage, use of utilities, lighting and code compliance. There are unlikely to be many applications for variances from current code, Planning Board Chairman Ed Jones noted, but he also suggested the City Council may want to take an active role in the environmental review process.

"Given that the source of the funding is coming from the city, this may very well be something that the City Council may want to take on as lead-agency status," Jones said. "This is going to be a high visibility project."

Tonight is another Ladies' Night at The Mane Attraction. Chris Ariyaratnam organizes the monthly event as a way to help promote local businesses and raise funds for various local charities.  In addition to shopping the booths of local vendors, visitors can buy raffle and Chinese auction tickets. Tonight's event isn't over yet (at 6:15 p.m.). It is open until 8 p.m.

Toyota of Batavia is investing $975,000 to expand its dealership, and to help the project along, the Genesee County Economic Development Center is providing a $7,500 tax incentive.

The project was first approved for benefits on Feb. 21, 2008.  But the actual benefit was approved this week.

The dealership is mortgaging its property for $600,000 to help pay for the project. GCEDC is providing the mortgage-tax exemption.

The GCEDC estimates that for every $1 of tax benefit, the community is realizing $616 of investment by the company.

The dealership is located at 3899 W. Main St. Road in the Town of Batavia.

New York Senator Kirsten Gillibrand used her weekly call with the media today to make a different kind of pitch -- rather than promoting some bill she's signed on to, Gillibrand made an appeal to New York's employers: Hire a veteran.

On the day before Veteran's Day, the senator is reminding businesses that there are tax credits available when they hire military -- especially war -- veterans.

Unemployment among veterans is 14.6 percent, Gillibrand said.

She also announced legislation to help veterans become entrepreneurs. The Veterans Business Center Act of 2009 would help veterans gain access to capital and federal grant money to start new businesses or expand existing ones.

“Too many veterans are coming home to a very bad job market and unable to find work,” Gillibrand said in a statement. “They fulfilled their duty to our country, and now it’s time for us to fulfill our duty to them by making sure they have access to a good-paying job.

"The tax breaks we put in place earlier this year are a win-win for businesses and veterans, but we need to make sure businesses know they are available and take advantage of them by hiring more veterans. I'm making a personal pitch to the business owners I meet to hire a vet and take advantage of the tax credit.”

Full press release after the jump:

Washington, D.C. – With unemployment among young veterans in New York topping 14.6 percent, U.S. Senator Kirsten Gillibrand is making a personal pitch today to New York business to hire veterans and receive a tax break from the federal government in return. The Work Opportunity Tax Credit, which was expanded earlier this as part of the Economy Recovery Plan, can help thousands of veterans who are returning home from Iraq and Afghanistan to find a still-reeling economy and scarce jobs.

To provide additional economic assistance for veterans, Senator Gillibrand is also introducing the Veterans’ Business Center Act of 2009 – legislation that would help veterans gain access to capital and federal grant money to start new businesses and grow existing ones, as well as new a proposal to provide assistance for homeless veterans. 

“Too many veterans are coming home to a very bad job market and unable to find work,” Senator Gillibrand said. “They fulfilled their duty to our country, and now it’s time for us to fulfill our duty to them by making sure they have access to a good-paying job. The tax breaks we put in place earlier this year are a win-win for businesses and veterans, but we need to make sure businesses know they are available and take advantage of them by hiring more veterans. I'm making a personal pitch to the business owners I meet to hire a vet and take advantage of the tax credit.”
 

According to a new report from Senator Gillibrand, 7.3 percent of all veterans across New York State are unemployed.

• In New York City, an estimated 17,300 veterans are unemployed. Unemployment among New York City veterans increased by an estimated 4,700 over the last year.
• In Western New York, an estimated 8,800 veterans are unemployed. Unemployment among Western New York Veterans increased by an estimated 2,400 over the last year.
• In the Rochester/Finger Lakes Region, an estimated 6,600 veterans are unemployed. Unemployment among all Rochester-Finger Lakes Region veterans increased by an estimated 1,800 over the last year.
• In Central New York, an estimated 5,800 veterans are unemployed. Unemployment among Central New York veterans increased by an estimated 1,600 over the last year.
• In the Southern Tier, an estimated 4,500 veterans are unemployed. Unemployment among Southern Tier veterans increased by an estimated 1,200 over the last year.
• In the Capital Region, an estimated 7,200 veterans are unemployed. Unemployment among Capital Region veterans increased by an estimated 2,000 over the last year.
• In the North Country, an estimated 3,000 veterans are unemployed. Unemployment among North Country veterans increased by an estimated 800 over the last year.
• In the Hudson Valley, an estimated 9,500 veterans are unemployed. Unemployment among Hudson Valley veterans increased by an estimated 2,600 over the last year.
• On Long Island, an estimated 12,200 veterans are unemployed. Unemployment among Long Island veterans increased by an estimated 3,300 over the last year.
  

To honor our veterans and give them the resources they need during these difficult economic times, Senator Gillibrand is launching a legislative agenda to provide economic assistance for veterans. 

Jobs for Veterans, Tax Cuts for Businesses

The American Recovery and Reinvestment Act that Senator Gillibrand helped pass earlier this year expanded the Work Opportunity Tax Credit to include new incentives for businesses to hire returning veterans, and extended them through the end of 2010. But with so few businesses aware of the tax credit, the opportunity has gone under-utilized. Senator Gillibrand has been partnering with local Chambers of Commerce across New York State throughout this year to raise awareness among New York businesses of the tax credit, and encourage them to hire New York veterans returning home.

With Veteran’s Day this week and unemployment among New York veterans remaining high, Senator Gillibrand is writing to every single Chamber of Commerce in New York, urging them to work with their members and encourage area businesses to hire veterans and utilize the federal tax break.
 
In return for hiring a veteran, businesses may write off 40 percent of the first $6,000 paid to a veteran. The veteran needs to be out of the service for no more than five years, and must have spent at least 4 weeks of the previous year on unemployment.
Additionally, Senator Gillibrand is writing to the Assistant Secretary for the U.S. Department of Labor, Jane Oates, requesting that the Labor Department’s Web site be updated with current information about the Work Opportunity Tax Credit to make sure businesses and veterans know about the opportunities available to them.  
 
New Veterans Business Centers

Nationwide, 14 percent of all small businesses are owned by veterans. But like all entrepreneurs, veterans face the challenge of getting access to the capital they need to get new business ideas off the ground. To help give them the start-up money they need, Senator Gillibrand is introducing the Veterans’ Business Center Act of 2009 – legislation that would establish a national network of Veterans Business Centers (VBCs) to serve as a one-stop-shop for veterans trying to start a business.

Based on effective Women Business Center models, the new national network of VBCs would help veterans navigate federal grant programs to start new businesses, and offer expert guidance for veterans working to start or grow their businesses. The legislation would provide each VBC with up to $150,000 each year for up to five years, leveraging at least 50 percent from private investments or other sources.

The VBCs would be targeted for areas with high numbers of returning veterans with the ability to assist over 100,000 businesses nationwide within their first two years. Based on New York’s share of all small businesses, that means more than 10,000 businesses assisted in New York

Veterans Homeless Fund

Over 130,000 veterans are homeless, according to estimates from the Department of Veterans Affairs. With more and more veterans returning from Iraq and Afghanistan, and with the economic downfall keeping them out of the job market, veterans are at increasingly high risk of living in poverty and homelessness. In fact, according to a study by the National Alliance to End Homelessness, over 70,000 veterans recently home from Iraq and Afghanistan spend over half of their income on housing, despite not having access to a new job once they get home – putting them at extreme risk of going homeless.

To help give homeless veterans the resources they need, Senator Gillibrand is co-sponsoring legislation that would allow American taxpayers the opportunity to provide $3 of their taxes for homeless veterans by creating a new check-off box on federal tax returns, similar to the Presidential Election Campaign fund. 

The $3 check-box would not be required, but would simply give every taxpayer the chance to send some much-needed help to homeless veterans.

Genesee County will soon be home to the first shovel-ready agri-business industrial park in New York, according to Chad Zambito, spokesman for the Genesee County Economic Development Center.

GCEDC breaks ground on the project Tuesday and expects the first tenant to start building a $15 million food-processing facility in the spring.

"These are expensive ventures and private developers aren't willing to do it because of the cost that’s needed up front and the long-term return, so it’s something we have to do and we need everybody’s participation to make it happen," Zambito told WBTA.

The groundbreaking is scheduled for 10 a.m. at the Kennedy Building of the Genesee County Fair Grounds.

The 200-acre park is located between state routes 5 and 63 in Batavia and sits in close proximity to O-AT-KA Milk Products. 

At full build-out, the park is expected to provide 1,200 jobs in Genesee County and generate $2 billion in revenue over 25 years.

The first tenant, a Canadian-based food processor, will hire 100 people to work at its facility.

When the infrastructure installation is complete, the site will contain nearly 200 acres  serviced by industrial-class electric, gas and rail. The park is dedicated to agri-business applications including food and bio-fuels processing and is owned by a unique public/private partnership.

It also has access to 6 million gallons of aquifer water daily, ideal for food production applications, and sits in an Empire Zone.
 
The GCEDC, along with its real estate affiliate the Genesee Gateway Local Development Corporation and an affiliate of Farm Credit of WNY share ownership of the park.

It was largely made possible by a state grant recently approved by Empire State Development and a matching grant from Genesee County. The GCEDC, Town of Batavia, National Grid and National Fuel are also providing funding. 

Phase 1 construction, being completed by Zoladz Construction Company Inc. of Alden, NY, will include water, sewer and roadway base installation. 

Three Genesee County companies made the 23rd Annual Democrat and Chronicle list of Top 100 companies in the region.

The local companies are: Lapp Insulators LLC, 130 Gilbert St., LeRoy; Liberty Pumps Inc., 7000 Apple Tree Ave., Bergen; and, Manning Squires Hennig Co. Inc., 8426 Seven Springs Road, Batavia.

Here's what the D&C says is criteria for making the list:

The Top 100 companies are ranked by revenue growth using a mix of dollar and percentage increases over the three most recent fiscal years. To be eligible, companies must be privately held, independent, have a minimum of $1 million in annual revenue and headquarters in the Rochester region, which includes Monroe, Ontario, Wayne, Livingston, Orleans, Genesee, Wyoming, Seneca and Yates counties.

The D&C said the average growth rate for the Top 100 companies over the past two years was 25 percent.

Batavia-based Graham Corp. today announced more than $16 million in new contracts.

Graham manufactures equipment critical oil refineries and the petrochemical industry. The  new contracts are for two refineries in the Middle East and a fertilizer project in Asia.

James R. Lines, Graham`s President and Chief Executive Officer, commented, "It is encouraging to see increased purchasing activity in our international markets, particularly in Asia and the Middle East, where we expected the recovery from the global recession to begin. We are also seeing renewed quoting activity in South America. However, we do not believe our markets are in full recovery, and we continue to expect non-uniform order levels for several more quarters."

Less than a month ago, Graham laid off 15 local workers.

The staff at Bank of Castile/Tompkins Insurance on Main Street in Batavia are having some Halloween fun today. The top three floors are decorated with various Disney scenes and most of the staff is dressed appropriate to the theme on their floors. Groups of children from the YMCA are visiting throughout the day receiving treats as they visit Batavia's own Disneyland.

As a baker's son, I'm generally pretty aware of my surroundings when it comes to availability of cakes and bread. I've had a few conversations in the past few months with people along the lines of, "how come there's no bakery in Genesee County?"

Well, there is a bakery in Genesee County, and it just hadn't sunk into my head yet, but I happened to make a couple of trips out to Bergen this week, which reminded me about Greg'ry's Bakery and Cafe.

I stopped in there today -- they have a fine selection of locally made bread, cakes, scones, muffins and cookies. I'm glad I came across it again.

You see Pauly Berardini everyplace. His face is on the side of his ubiquitous delivery cars, on the outfield wall at Dwyer Stadium and various youth sports facilities around town.

It’s been that way in Batavia for five years now.

It’s an audacious bit of promotion, but when Berardini and his partner Dave Stupp decided to open up a pizza joint, they knew they would need strong marketing to stand out in a very competitive town for pizzerias.

“I thought about that (the competitive environment),” Berardini said while slathering tomato sauce on a pepperoni pie destined for a youth sporting event. “I thought about the demographic. I just decided to use my face, my talent and go from there.”

He's done other things with his life – from baking to selling cars – but to hear him talk, it’s clear: 40-year-old Pauly Berardini was destined to be a pizza man.

“I went to food service at BOCES and I learned how to frost cakes and make pancakes,” Berardini said. “That wasn’t exciting to me. Ever since I was a little boy, just watching that guy throw a pizza in the air – you know, like a kid wants to be a fireman, he sees the fire trucks, I saw a couple of gentlemen who ended up being good friends of mine kind of teaching me the business, and I just decided it was something I wanted to do.”

Pauly was inspired by the pizza men he saw at the legendary Gino’s Pizza. Gino’s was a mainstay at 102 Liberty St. through the 1960s and 1970s. Then the location became Ficarella’s, where Pauly worked for seven years. And that was the location Pauly chose for his own pizzeria when he and Stupp opened for business Oct. 24, 2004.

By all accounts, the original Pauly’s was a successful, growing company, and then tragedy struck – the kind of turn of events that has put many people out of business – fire.

An early morning blaze on March 21, 2007 destroyed Pauly’s on Liberty. The cause of the fire was never determined, but it meant that three businesses lost their locations. The old place -- behind the former Mother’s Chicken ‘n’ Fish building  -- is now a parking lot. 

Apparently, the two other businesses in that building – Room for Dessert Cafe and Batavia Framing and Design – never reopened.

Berardini and Stupp weren’t going to be kept down, though. Eighty-eight days later, the doors opened at 314 Ellicott St., and this time Pauly's featured seating and a waitress, a level of service the partners had wanted to add all along.

“I had a lot of phone calls and messages that were left on my answering machine from customers and friends encouraging me to get going again,” Pauly said. “Yeah, it was traumatic at first, but when one door closes, another one opens.

"Now we have a great sit-down place here and the parking on the weekends is great. (People can) bring the family, have a party – we have a party of 20 today – sit down is the key.”

Pauly was excited Saturday morning -- not just to be celebrating five years in business – he and Stupp had just received word that they’ve been approved for a beer and wine license and will start serving them within a week.

“Now you can come and enjoy pizza or pasta with beer or wine, and that’s always a plus,” Berardini said.

More than 400 people showed up for a party on Saturday evening at 700 Ellicott St., world headquarters of Chapin International, a growing Batavia-based manufacturer that employs 175 people and has been run by the same family since its founding in Oakfield 125 years ago.

Now that's something to celebrate.

Chapin International is a rarity in the business world. It's been family owned through four generations (and heading toward a sixth), which puts it among 2 percent of all U.S.-based businesses. Plus, it's been located in Western New York 1884, which puts it among an elite 1 percent of businesses statewide.

"I’m sure that my father, grandfather and great-grandfather would be amazed at what we have here today,"  Chairwoman of the Board Andris Chapin told the crowd to open the party.

"They would be amazed that there would be a tent and music and beverages and ice sculptures and just all of the wonderful things that have been put together for us today to help us celebrate."

The party featured dignitaries such as Congressman Chris Lee, Assemblyman Steve Hawley and State Senator Mike Ranzenhofer, but more emphasis was put on the importance of Chapin employees. Lee and Hawley both noted that the company's survival is a testament to how well its employees are treated.

Hawley told a story of how he first met Andris's father, Ralph Chapin, who befriended him as a college student. Hawley described him as an intelligent, kind, caring man, and that's why so many people have stuck with the company for so long. Chapin has third-generation employees, and people who have worked for the company for 30, 35 and even 45 years.

"It’s impossible to thank the thousands of people that have gone through our doors as employees, to thank them enough, but all I can say is I speak with such joy and sincere gratitude to all those people that have worked for us over the years," Andris said during a short interview. "Thank you. Thank you. Thank you."

In 1884, Ralph E. Chapin and his brother-in-law, Frank Harris, were selling kerosene at their hardware store in Oakfield, when Chapin noticed that the containers his customers used were not well made. They leaked. So Ralph started making his own cans in the back of the store and selling them to his customers. Soon, the cans were so popular, that Chapin sold the hardware store and opened up a factory in Batavia.

By the turn of the century, Chapin Industries was manufacturing air and hand sprayers for spraying a variety of liquids, from pesticides to cleaning solutions.

Chapin is still known best for its cans and sprayers, but CEO Jim Campell said in recent years the company has been growing by acquiring other firms, such as a company that makes bird feeders and bird-feeding supplies. That company, Campbell said, has doubled in size since Chapin bought it.

"It’s a great honor to be the person who is tending the business at this point, at 125 years," Campbell said. "I intend to leave it in better shape than when I got here."

He seems to have Chapin heading in a positive direction. Campbell, who became CEO in 2004, said the company has grown at a record pace each of the past five years.

And in an interview, when asked about what makes Batavia a good place for Chapin, he again talked about Chapin's workforce.

"Batavia is a great place to be," Campbell said. "Genesee County is still agriculturally based, and when you get people from agriculturally based communities, they come in with a really great work ethic. I’ve run businesses in very large cities and have actually been involved in manufacturing in China and Germany and the work force in Batavia is really second to none. People are extremely diligent. They show up for work, which is a big thing that you sometimes find is a problem, and they are very conscientious."

Andris Chapin said she's well aware of the pressure companies face when they stay in Western New York, but she said Chapin is committed to Batavia.

"My father and my aunts were all born here, in Batavia, and we have supported this community by providing employment for all this time and I just feel strongly that as long as it’s truly feasible we need to continue to support Batavia, Genesee County," Chapin said. "It works two ways. We have third-generation employees in the company. If we don’t take care of them, they can’t take care of us. We’re helping each other. Part of the viability of the company is just to hunker down, yes, and believe in Batavia, believe in Genesee County, believe in Western New York. If everybody went away, there would be nothing. So, so far we can do it, and that’s part of our resilience. But, yeah, it’s hard. New York State, Western New York, it’s tough."

The State's economic woes and a wet, dreary summer has put the squeeze on the Genesee County Chamber of Commerce's tourism promotion budget.

The state cut its "I Love New York" allocation to the chamber by 20 percent, or $15,000.

The wet summer kept some people from traveling and the local bed tax was down 9 percent, or $26,000.

That kind of drop is reminiscent of 2004, according to chamber Tourism Director Kelly Rapone. That year there were a lot of rainy days and that resulted in fewer hotel stays locally.

"The impact on the programming is that we're not really able to develop new programming or enhance the programming that we have," Rapone said. "It hurts our ability to provide additional marketing dollars to our partners"

The chamber's tourism division is responsible for helping bring people into the county for golf, or events, or sight-seeing. It puts together golf packages for individuals and groups, provides information on amenities and things to do and markets the county throughout the region.

One of the changes in market, Rapone said, is that the Chamber will reduce the radius of its marketing from about 300 to 500 miles to 200 miles.

"We're going to be looking to do more precise, targeted efforts rather than some of the broader initiatives," Rapone said.

A host of local dignitaries and medical professionals gathered in the North Street parking lot today for a groundbreaking ceremony on a $20 million expansion of United Memorial Medical Center.

The project will add 44,000 square feet to the facility as a one-story addition to the front of the current structure. Operating room space will double from 300 square feet to 600 square feet. An additional 19 private recovery beds will be added to the hospital as well.